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The True Price of Chocolate

The True Price of Chocolate

Cocoa Prices Spike During Political Crisis

Prices for raw cocoa continue to rise this month, as political conflict in one of the world’s most prolific producers of cocoa beans threatens to create a worldwide cocoa shortage.

The Republic of Côte d’Ivoire (more commonly known in English speaking countries as Ivory Coast), on the coast of West Africa, produces 40 percent of the world’s cocoa beans. And right now, the country’s government is in crisis. 

In November 2010, longtime Ivory Coast President Laurent Gbagbo lost an election to Alassane Ouattara, leader of the opposition Rally of the Republicans party — at least according to international election observers, the Economic Community of West African States and the U.N. But Gbagbo has disputed the election results and refuses to step down. The result has been a divided nation with a government in limbo.

In an attempt to choke off President Gbagbo’s economic power, the legitimate President-Elect Ouattara has called upon the nation’s cocoa farmers and processors to stop exporting cocoa until Gbagbo steps down.

This move of peaceful economic protest has been supported by the U.N., the U.S. State Department, and even the U.S.-based corporate food production giant Cargill, which in February temporarily stopped importing Ivory Coast cocoa. 

But in response to the Ivory Coast political conflict and Ouattara’s cocoa export ban, global cocoa prices have risen every month since November, and show no sign of falling until the crisis is resolved. 

Higher cocoa prices translate, of course, into higher costs for chocolate makers and higher chocolate prices for consumers. 

According to a recent article in Business Week, some big-name candy producers, like Hershey and Kraft, reluctant to raise product prices, have responded to the growing cost of both cocoa and another key chocolate bar ingredient, sugar, by injecting air bubbles into their confections to lower the amount of actual chocolate in candies — and then marketing the altered treats as “light” or “lower calorie.”

But candy, drink and food producers will likely just have to raise prices over the next several months on products containing cocoa, which could make chocolate a less affordable luxury for some in this tough economy.

How Much Should Chocolate Cost?  

Positive political resolution in Ivory Coast in the future may bring cocoa prices back down. But in reality, cocoa prices have been volatile for years, and the overall trend for decades has been toward more expensive cocoa.

It may seem counterintuitive, but one of the reasons cocoa was growing more and more expensive even before the Ivory Coast political crisis may actually be that the most of the African farmers who produce cocoa beans are paid too little.  

The average cocoa farmer in Africa earns just 80 cents a day. Farm work involves hard physical labor and long hours, and cocoa farmers have little access to resources more commonly available to workers in urban areas, like health care for their families, or education resources for their children. 

As a consequence of such low pay, coupled with the difficulties of their lifestyle, many knowledgeable cocoa farmers whose families have been farming cocoa beans for generations in Africa are now abandoning their rural farms and seeking new work opportunities in cities, leaving cocoa distributors scrambling to find skilled workers to supply cocoa beans.

The cacao trees that produce cocoa beans are highly susceptible to pests and the ravages of weather, and it takes a skilled farmer to produce a bumper crop of cocoa year after year. Paying cocoa farmers more fairly for their product might actually save corporate cocoa buyers money in the long run, by stabilizing the lifestyles of experienced farmers and making the job more attractive to highly skilled young people, which will in turn improve the productivity of cocoa farms.

Fair trade organizations, like the World Cocoa Foundation, argue that the best way to keep chocolate available at affordable prices for generations to come is to pay cocoa farmers living wages for their work — which can often be accomplished by reducing corporate profit margins by just a few percentage points, or raising the price of chocolate by just a few cents a bar.

So next time you have a craving for chocolate or cocoa, consider paying just a little bit more for a fair trade brand. You’ll be supporting the people of the Ivory Coast, who are currently protesting in the name of freedom, and also helping to ensure that cocoa farming can continue for generations to come.

More on the Ivory Coast Conflict:

Six Women Protestors Gunned Down In Ivory Coast

Other Related Stories:

Why Choose Fair Trade? You Can Satisfy That Sweet Tooth and Stand Up Against Child Labor

Slave Labor, Child Labor, Animal Suffering: What is Consumer Ethics?

 

Read more: , , , , ,

Detail of photo of roasted cacao beans by SuperManu, from Wikimedia Commons. Used under Creative Commons license.

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112 comments

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2:12PM PDT on Sep 16, 2013

All chocolate should be slavery free.

To help make that happen, encourage Nestlé to keep their promises to end slavery in their production by signing my petition: http://www.thepetitionsite.com/431/525/548/sell-slavery-free-chocolate/

4:39PM PDT on Jul 31, 2012

Thanks.

10:52PM PST on Nov 17, 2011

So, Nestle, Hershey's, General Foods and Kraft are all part of the World Cocoa Foundation and Divine Chocolate http://bit.ly/utcTGE isn't?

Why am I feeling suspicious?

1:23PM PDT on Sep 6, 2011

Now the chocolate makers have yet another reason, albeit real, to mess with the size and
weight and constituents of their products. For years Hershey has repeatedly downsized its bars.
Of course this is a typical trick of manufacturers of packaged food. I am old enough to remember when we once had 1 lb, 2 lb and 3 lb cans of coffee. I've lost count of the number of variations in weight, included many fractions of an ounce, there now are.

6:41PM PDT on Sep 5, 2011

So even chocolate is affected by politics.

2:12PM PDT on Sep 5, 2011

Fair Trade Chocolate is a true delight. :)

3:34PM PDT on Jul 18, 2011

In the UK one of our large supermarket chains is co-operatively owned (owned by everyone who shops/works there), they sell a large range of fair trade products sourced both locally and from across the world, this makes buying fair trade products so much easier. The other large chain supermarkets are still exploiting producers, for example paying less for milk than it costs to produce and yet still selling it an ever increasing prices. If we, the consumers, do not demand change then producers will go out of business and prices will be controlled by a few rich and greedy people.

3:02PM PDT on May 14, 2011

Thank you for taking the time to share this with us all.

7:30AM PDT on Apr 22, 2011

If the farmers are making only 80 cents a day .....
And the middle men getting fatter
Just like a 20% increase in crude Oil prices ...
Increasing gas pump prices up 70%...
Why the extra 50%

the gas market is screaming stop using me but demand remains static.
the chocolate market is screaming plant chocolate
and demand is still growing...

work it out give an equal share to all the parties and the industry will thrive with partnerships between all companies Big and small.

4:29PM PDT on Mar 31, 2011

It seems that all of the large companies in the US are needed to be boycotted because of greed. I shall be buying from the sites here on Care2!!

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